The Failure of Capitalism

I keep touching on the subject of political and economic systems and it is constantly a topic of introspection. My prior essay on the topic identified socialism and capitalism and outlined their strengths and weaknesses. One of the questions on the online dating site OKCupid is: "overall, has capitalism made the world a better place?" — yes or no. I went back and forth on my answer and offered the explanation, "umm … yes, weakly. It is ONLY good for fast growth (like building a nation), and once we get to a point that we don't need fast growth, it is very very bad."

But you know, I'm beginning to think it's about as useful as using dynamite to go fishing. Sure it's the fastest way to get all the fish, but aside from that, no good comes from it. So now I declare capitalism a complete failure.

Here's why.

Let's move aside from any system and talk about what kind of standards would define a good system. Kind of like a scientific-ish way of looking at it — to look at how we would measure what makes a great system, or a great society.

My first take would be "everyone is genuinely happy all the time". That's the ideal target which isn't actually possible. So what would be acceptable? I'd lean toward "everyone is genuinely happy most of the time" more than "most people are genuinely happy all the time" — in other words, everyone in the society gets to be happy sometimes is better than some people never get to be happy. I'd further say that it be pretty balanced, so there isn't a group of people who are happy one day a year and another group that are happy 364 days a year.

So what's happy? I'm kind of a fan of Abraham Maslow's "Hierarchy of Needs". I learned about in an intro to psychology class in college and it's always stuck with me. The gist is that each human being must first have jeir "Basic needs or Physiological needs" met before jee can be content in having jeir "Safety Needs: Security, Order, and Stability" met before jeir need for "Love and Belonging" before jeir need for "Esteem" (feeling successful in life to yourself and others), and all that before jeir "Need for Self-actualization".

For reference, I'll quote the Wikipedia's chart of needs to identify the specific examples that Maslow defined, adding my own interpretation/clarification where applicable:

  • Physiological — breathing, food, water, sex [physiological sexual release], sleep, homeostasis [rudimentary nutrition and shelter; e.g. letting the body heal itself and not freezing to death], excretion
  • Safety — Security of: body, employment, resources, morality, the family, health, property
  • Love/belonging — friendship, family, sexual intimacy
  • Esteem — self-esteem, confidence, achievement, respect of others, respect by others
  • Self-actualization — morality, creativity, spontaneity, problem solving, lack of prejudice, accepting of facts

I claim this is the path to genuine happiness as it fits with my own life experience. For instance, I find it terribly difficult to have high self-esteem when I feel my life is unstable. I can't say whether the highest layers apply to everyone, in part because they're a bit more nebulous (e.g. everyone needs water, but what fosters "esteem" in one person may do nothing for someone else.) This is also because the "lower" needs are more primitive to a being, and the "higher" ones are more refined by intelligence.

I guess when I talk about being "everyone is genuinely happy most of the time" I mean more specifically that every citizen has a minimal baseline of needs that are consistently met, and that any individual's level of needs that are met does not radically change from day-to-day.

What a society should do, at a minimum, is to not prevent an individual from tending to jeir needs, then to protect each individual's ability to tend to jeir needs from interference by others, and finally that it provide for the needs of all individuals.

But because the needs of an individual are hierarchical, it's the permission, protection, or providing at the lowest level that counts. In other words, if an arbitrarily foolish society does not prevent anyone from having esteem, but does prevent them from having water, then it is only as good as any society that prevents individuals from having water.

I'm going to attempt this line of logic: the minimal society is no structure at all which does nothing to prevent self-fulfillment of needs, but also does nothing to protect individuals from one another, and does nothing to provide. So any society that actively prevents the fulfillment of any need is necessarily worse than the minimal society. Thus, all societies worth considering must not prevent self-fulfillment of any need at any level.

Next, better societies protect a higher level of tending to needs from prevention by others. For instance, a society that protects individuals right to tend to all their basic needs from intrusion by others is better than one that fails to protect an individual's ability to tend to the need for food, even if (because of the hierarchical nature of needs) it protects individuals tending to the needs of safety.

And finally, the idyllic society would technically fulfill all needs, but that is necessarily impossible as some needs are met through introspection, (which curiously, by my read the definition of Christian "heaven" seems to be a society that fulfills all needs in exactly that way). Thus the idyllic achievable society is limited to providing all externally achievable needs (idyllic in that it is unachievable, but intended as a goal to aspire toward).

So now I can finally start comparing systems.

Pure capitalism — pure competition — actively prevents no person's ability to tend to jeir needs, but it provides no protection and fulfills no needs. It is essentially a system predicated on the wild state, and therefore indistinguishable from no system at all.

More realistically, there is the United States flavor of capitalism which, as it stands today, has some socialist elements. In general, it does not prevent tending to needs (although by taxing people who earn less than a minimal living wage, I could argue that it prevents those people from tending to their basic needs.) The laws we have protect individuals tending to most of their basic needs, and a few needs of safety from prevention by others. It provides a bit of a safety net and provides for breathing, food, and water in the form of welfare. On the standard of "everyone is genuinely happy most of the time", it's limited to the most rudimentary basic needs — ergo, "everyone" is guaranteed not to starve to death, although you might freeze to death. By these standards, on the scale of how good things could be, it's pretty lousy.

To try and stay concrete, I'll turn to the International Covenant on Economic, Social, and Cultural Rights. It's a document that outlines a more substantial set of rights for individuals that includes fulfillment of essentially all the basic needs, and nearly all of the safety needs. On brief assessment, I see it as a far superior system, and something worth working towards.

My fundamental argument pivots on belief in Maslow's hierarchy, and that is the nature of humans to constantly attempt to attain their needs. When all the needs on a particular level are fulfilled, it is in our nature to strive to fulfill the needs at a higher level. And by depriving individuals of fulfilling the needs at a particular level, it is impossible to fulfill needs at a higher level (at least in any sustainable, genuine way). Look to your own life and comment if you can provide a counterexample — specifically that you have not fulfilled your needs on one level yet feel it would make no difference to do so to improve your ability to fulfill your needs at a higher level.

My point is that even if there are some people who will not strive to fulfill needs at a higher level, it is worth it to offer as much opportunity to everyone else who will. That is what makes a society great.

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